ABTA welcomes move to per plane tax

Friday 14, May 2010

ABTA welcomes the news that the new coalition Government has agreed to adopt a per plane tax. ABTA’s Manifesto launched on 10 March outlined the need for the reform of Air Passenger Duty on a per plane rather than a per passenger basis. However, ABTA is calling on the Government to rethink its policy to scrap permission for a third runway at Heathrow and new runways at Stansted and Gatwick.

Mark Tanzer, ABTA Chief Executive said: "We have always stated that the travel industry should be taxed fairly and that a system more closely aligned to the efficiency of aircraft and distance travelled is the fairest way to achieve this, and we welcome the Government's move to adopt a per plane tax. However the amount of this taxation must not be set at a punitive level and when the European Union's Emissions Trading Scheme comes into force in 2012 it should be scrapped.

Before the Government makes final decisions about individual airports it needs to consider the overall capacity needs of the UK. Banning any airport expansion will severely damage UK PLC without significant environmental benefits as air traffic will simply migrate to our competitors on the continent".

ABTA has regular dialogues with numerous Government departments and will be looking to meet with key staff as soon as possible. With all the change in the political world it is essential that MPs and Peers have a clear understanding of our industry's needs and concerns.

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